Assessment of Province geographical Centralization of Industry and Effective factors on its value

The manner of distribution and dispersion of production activities and establishment of industrial units in different regions depends on the decisions of these units for locating in specified areas. But there are important and great factors which are effective in this decision making and production units by considering these factors، will select the proper location and region for their settlement. So، it can be indicated that the above said factors make a kind of centralization named as geographical centralization in industry which is one of the most important elements of the market structure. In this study، by measuring the provincial geographic concentration index in terms of employment and by using EG index، we study the impact of effective factors on this kind of centralization for the time period of 2000-2006، for which the econometric model of data panel، pooling method and Eviews 6 software were used. The results of this assessment for the study period shows that the three provinces of Semnan، Qazvin and Tehran has the most rate of geographical centralization of different activities in themselves. Also the factors including human capital، access to transportation and access to markets respectively has the most significant influence on the geographic concentration of industries in the province. Also the human capital variable in comparison with other factors affecting on geographical concentration of activities، has the greatest explanatory power in the model The significant of human capital factor and its strong and positive relationship with the rate of geographical centralization is the strong point for the policies of the state for regulating geographical centralization in the provinces and different areas of the country، so that the state by increasing the quantity and quality of this type of investment، particularly in deprived provinces will be able to reduce geographic concentration and take a very important step to create a regional harmonious development.